India's Foreign Trade - Introduction

Before 1947 when India was a colony of the British, the pattern of her foreign trade was typically colonial.

Ø India was a supplier of foodstuffs and raw materials to the industrialized countries particularly England and an importer of manufactured goods.

Ø This did not permit industrialization at home.

Ø As a result of the competition from British manufactures, the indigenous industries suffered a severe blow.

Ø Many developing countries adopted programs of import liberalization and export promotion in the 1960s and achieved remarkable success.

Ø These included Singapore, Hong Kong, South Korea and Taiwan.

Ø The success of these countries has prompted many economists and international agencies to advocate import liberalization and export promotion as a panacea for many economic ills facing developing countries like India.

Ø Acting upon their advice, the Government of India has opted for a policy of trade liberalization in recent years.



Ø Massive trade policy reforms were announced in 1991to open up the economy to foreign trade and to integrate the Indian economy into the global economy in the new international economic order that is